Data released by the IWSR has revealed a year-on-year rise in “on-trade consumption incidences” in certain markets, gathering information from consumers in countries such as China, Germany, Italy, Mexico, the UK and the US.
According to the IWSR’s Bevtrac Wave 2 survey, a longitudinal tracker of consumer purchasing behaviour across 15 nations, millennials have been largely responsible for driving a hospitality revival in the US, over-indexing in sales of Scotch whisky, liqueurs and sparkling wine.
Taking a broader perspective, however, the IWSR noted that “recovery of the total beverage alcohol market continues at a cautious pace”.
The report stated: “Uncertainty among consumers, and the continued rise of moderation, has temporarily disconnected the link between rebounding real incomes and beverage alcohol volumes and spend. Consumer confidence, however, is slowly recovering in the US, Europe and Latin America, and is generally stable elsewhere.”
It also contained insights into the bourgeoning economies of India and Brazil, where total alcohol spending had increased by 4% versus 2023.
“Growth in India is supported by a confident urban middle class and a younger LDA cohort that continues to trial new categories. Brazil and South Africa are benefiting from improving economic sentiment and a growing appetite for on-trade occasions.”
Yet the IWSR underlined that “moderation sentiment is evident in all markets apart from China and India; consumers in European markets are consistently most likely to claim they are cutting back on alcohol”.
Ivana Mitic, senior insights manager for Bevtrac at IWSR, commented: “The on-trade is a key driver of growth, and its slowdown, driven by price increases and changes in consumer behaviour, has hampered TBA (total beverage alcohol) as a whole. IWSR’s latest Bevtrac data shows a growing revival in the on-trade for some markets, offering a much-needed boost for the industry. As consumers return to bars and restaurants, we see a renewed focus on premium experiences and diversified offerings, laying the groundwork for future growth.”